Lithium Argentina Reports Strong 2024 Results and Future Growth Plans
Lithium Argentina AG announced its 2024 operational results, showing a 25% increase in fourth-quarter lithium carbonate production to 8,500 tonnes, reaching 85% capacity. Projected 2025 output is 30,000 to 35,000 tonnes. The company implemented new extraction technologies and plans significant regional expansions, all while reducing project-level debt from US$350 million to US$210 million.
Lithium Argentina AG has disclosed its fourth-quarter and full-year results for 2024, showcasing significant operational and financial advancements at the Cauchari-Olaroz project, now recognized as Argentina’s largest lithium carbonate operation. Production figures for 2024 reached 25,400 tonnes, surpassing initial estimates. Notably, the fourth-quarter output reached 8,500 tonnes, reflecting a 25% quarterly growth and achieving 85% of the designed production capability.
The company anticipates production levels of 30,000 to 35,000 tonnes in 2025, with continued growth expected in the latter half of the year. This growth will follow planned shutdowns aimed at enhancing chemical recovery and lowering operational costs. In terms of financials, the total cost of sales for 2024 amounted to US$178 million, while cash operating costs were US$7,130 per tonne sold, decreasing to US$6,630 per tonne by the fourth quarter of 2024. Predictions indicate sustaining capital expenditures to remain between US$600 and US$700 per tonne for 2025.
Innovation plays a crucial role in the company’s success, as it transitions to implementing advanced processing technologies developed by Ganfeng Lithium Co. Ltd. This includes the adoption of a solvent-based direct lithium extraction (DLE) process, with a 5,000 tpa demonstration facility expected to be operational by the end of 2025. Concurrently, Lithium Argentina is advancing Phase 2 expansion of Cauchari-Olaroz, which aims to contribute an additional 40,000 tpa of production capacity, utilizing existing infrastructure and new technological advancements. Furthermore, a proposal for this expansion to be included in Argentina’s Large Investment Incentive Regime (RIGI) is in the pipeline.
Regionally, in collaboration with Ganfeng, the company is implementing a growth strategy encompassing the integration of various projects in Salta, notably Pozuelos-Pastos Grandes, along with majority shares in Pastos Grandes (85%) and Sal de la Puna (65%). This strategy targets achieving up to 150,000 tpa of lithium carbonate production, combining solar evaporation and DLE methodologies.
On the financial front, Lithium Argentina has effectively reduced project-level debt from US$350 million to US$210 million in 2024. The company successfully completed its transition from Canada to Switzerland in January 2025, adopting the name Lithium Argentina AG and securing listings on both the TSX and NYSE under the ticker “LAR.” As of year-end 2024, it reported holding US$86 million in cash, alongside a US$75 million undrawn credit facility with Ganfeng. Its operating subsidiary, Minera Exar S.A., has approximately US$210 million in third-party debt, which includes local bonds and bank financing. Additionally, Minera Exar has procured a new US$150 million credit facility projected to finalize in Q2 of 2025, enhancing its financial capabilities.
In summary, Lithium Argentina AG has made substantial progress in its operational and financial metrics during 2024, particularly at its flagship Cauchari-Olaroz project. With an upward production forecast for 2025 and ongoing technological advancements, the company is positioned for continued growth. Strategic collaborations and reductions in debt further enhance its prospects, paving the way for future expansions and financial stability.
Original Source: www.panorama-minero.com
